Spain's New Tax Strategy Secures Parliamentary Approval

Spain's government successfully passed new tax legislation, extending a controversial bank levy for three years. The decision came after negotiations with smaller parties. The move aims to ensure companies pay a minimum tax rate and support renewable energy investment amidst banking industry concerns.

Spanish lawmakers have approved the government's new tax strategy, extending a modified bank levy for another three years. This development comes after the coalition secured last-minute support from smaller parties in the divided parliament.

The governing Socialist coalition reached an agreement with Podemos, passing the measure by a margin of 178-171 votes. As part of the deal, a once-dropped permanent windfall tax on energy companies will be revisited, potentially extending the current temporary tax by another year.

The fiscal package mandates that large corporations in Spain with turnovers exceeding 750 million euros must pay at least a 15% tax on their consolidated profits, aligning with European directives. Opposition from the People's Party and Vox highlights ongoing tensions within the legislature, though they fell short of majority control with 172 seats.

(With inputs from agencies.)